Sify Defers Merger of Technologies And Communications Unit; Launches Gaming Portal, Re-Designs

— The press office at Sify is busy this week. Sify Technologies has deferred the merger of its subsidary Sify Communications. Sify Communications, which holds National Long Distance (NLD) and International Long Distance (ILD) licenses will continue to conduct the VPN and Voice services of the company while Sify Technologies will conduct the international and consumer services of the firm. According to Mr M P Vijay Kumar, CFO, Sify Technologies, the merger has been deferred to capitalize on an expected change in government regulation and policies. Kumar is pointing to the recent recommendations on Internet telephony that allow ISP’s like Sify the ability to offer VoIP, the planned merger would allow Sify Comm, which holds NLD and ILD licenses, to offer a competitive VoIP service on the back of its ISP business. One could expect a decision on the merger, approved by shareholders in March ’08, to be formalized once the recommendations are made policy.

— On the back of the Google Apps announcement, Sify has has re-designed their website and launched a gaming portal titled Besides A3, a PC-based MMORPG, the site is dominated by casual games. Sify has initiated a national Counter Strike tournament as well. The website re-design is skewed towards the home-page, individual verticals like Videos (Sifymax) still sport the old look. Our sources however tell us these will be going in for a change as well.


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